GOAL OF BUSINESS PROCESS WORKSHOP Identify all of the business processes, at a high-level Define the type of data (in.
Download ReportTranscript GOAL OF BUSINESS PROCESS WORKSHOP Identify all of the business processes, at a high-level Define the type of data (in.
GOAL OF BUSINESS PROCESS WORKSHOP
Identify all of the business processes, at a high-level
Define the type of data (in a high-level) that will be maintained in the processes.
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SAP America, OS.PPT - 10/13/97, Slide 1
AGENDA
Definition of Business Processes
High Level Business Process Overview
Business Process
Project System Production Planning Financial Accounting Controlling Asset Management/Investment Management Materials Management Sales and Distribution Human Resources
Define the Business Processes and data in SAP based on the Chico Creek Brewery’s Organizational Structure R
Document the Company’s SAP Business Processes
SAP America, OS.PPT - 10/13/97, Slide 2
Project System - Business Processes
Creating a project
Developing a project
Executing a project
Analyzing a project
Closing a project R
SAP America, OS.PPT - 10/13/97, Slide 3
Project System - Components
Project Definition – Stores master data for the entire project, including overall start and end dates, project owner, project number, and description.
Work Breakdown Structure (WBS) – The hierarchy that the WBS elements are organized into. Breaks down processes into the smallest components or tasks.
WBS elements – The building blocks of the project. They represent different phases or parts of the project. Each WBS element is a cost object. All project costs are posted to WBS elements.
Network (optional) – The activities are linked together to create the network in the form of a PERT chart. SAP can determine the critical path from this.
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SAP America, OS.PPT - 10/13/97, Slide 4
Project System - Features
Cost Planning (via the WBS)
Date Planning and Scheduling
Link to Purchasing (Purchases made show up immediately as project costs)
On-line Reporting
Financial Control
Graphic Displays (Network, WBS, Gantt Charts) R
SAP America, OS.PPT - 10/13/97, Slide 5
PP-Continuous Process
Continuous Process Scenario overview:
manages the planning, execution, and control activities for our process-oriented manufacturing of beer.
4 Basic Steps that encompass our brewing process……..
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SAP America, OS.PPT - 10/13/97, Slide 6
Step 1 of Continuous Process
Begins with the Sales and Operation Planning
forecasting tool, ie. used to helps decide specific number of batches of each type of beer that should be made
Long-term production plan and Master Schedule produced using SOP information are R
SAP America, OS.PPT - 10/13/97, Slide 7
Step 2 of Continuous Process
The master flow is computed using the MRP and capacity leveling.
Capacity leveling: is determined in step 1 and balances the master schedule and plant capacity
Material Requirements are passed to the procurement process R
SAP America, OS.PPT - 10/13/97, Slide 8
Step 3 - Continuous Process
The process order is created production of the beer and manages the actual
process order transforms materials and processes used with the master recipe into actual information that is needed to brew the batches of beer contains master recipe data and workflow instruction master recipe: description of materials needed in one production run (grain, purified water, hops, fermented sugar, barley malt)
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SAP America, OS.PPT - 10/13/97, Slide 9
Step 4 - Continuous Process
Actual production flow which is the completed scenario
Material is received, the resources are used, and the process order is completed and closed out
resources: production personnel needed for production (maintenance workers, forklift drivers, line workers, warehouse personnel)
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Vendor Processing Consolidation Customer Processing Special Purpose Ledgers Processing General Ledger Processing SAP America, OS.PPT - 10/13/97, Slide 11 External Accounting Credit Subsidiaries Head Office Process OTA Vendor Processing
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General Ledger Processing
Generates closing reports as required by law
Structure:
company code (CO) business area (not applicable for the CCBC) chart of accounts (each module will give input)
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SAP America, OS.PPT - 10/13/97, Slide 12
General Ledger Processing
Integrated with:
procurement (MM) assets accounting (AM/IM) controlling (CO) SAP America, OS.PPT - 10/13/97, Slide 13
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Vendor Invoice Processing
Connects Purchasing to Accounting
Master Record consists of 3 parts
general data (addr, telephone, etc.) company code data (payment terms, methods) purchasing organization data (p.o., quotes) most of this information comes from MM and is posted to G/L
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SAP America, OS.PPT - 10/13/97, Slide 14
Vendor Invoice Processing
Posted to one of two accounts:
current assets account fixed assets account (will go to AM) also posted to G/L SAP America, OS.PPT - 10/13/97, Slide 15
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Customer Processing
Mgmt of transactions for standard customers
Credit Management (Sales)
closely linked to CO & cash forecasting
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SAP America, OS.PPT - 10/13/97, Slide 16
Customer Processing
Customer Master Record consists of 3 parts:
general data (addr, telephone, etc) company code (form of payment, due dates) sales data (shipping, invoicing, etc.
this info is mostly from the sales team all the transactions are posted to the G/L
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SAP America, OS.PPT - 10/13/97, Slide 17
Customer Processing
Dunning procedures remind customer that the payment is overdue
Info needed from SD:
level (# of days overdue) text (strength of language) vendor dunning optional interest & charges print-out of payment (due deadline)
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SAP America, OS.PPT - 10/13/97, Slide 18
Functional Areas - CO
Chico Creek Brewing Company
• Conventional cost center accounting typically structures costs by using the company’s organizational structure and areas of responsibility (e.g. functions). This shows
where
costs accrue in the company, but it does not specify
what
resources were used
how
.
Company
Personnel R & D Marketing Production
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SAP America, OS.PPT - 10/13/97, Slide 19
Business Processes: Order Process Product develop.
Customer service FI Accounting
Process-Oriented Structure
Personnel
Functional Areas:
R & D Marketing Production
• SAP uses a process-oriented view that considers costs on the basis of process organization across functions. Costs are debited to a business process based on its resource usage.
• The business planning and controlling scenarios in R/3 provide conventional cost center accounting capabilities but supplement these by allocating cost center costs to business processes.
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SAP America, OS.PPT - 10/13/97, Slide 20
1. Cost Object Controlling
Business Scenarios - CO
Chico Creek Brewing Company
2. Profitability Analysis Business Planning and Controlling
CO Module
4. OH Cost Management SAP America, OS.PPT - 10/13/97, Slide 21 3. Profit Center Accounting
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1. Cost Object Controlling
•
Cost object controlling
is a part of product cost accounting that focuses on the economical creation of a product (called cost object). • It supplies key information for planning and monitoring of product costs. • Product cost controlling attributes the costs incurred in a company to its output units. (products, orders)
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SAP America, OS.PPT - 10/13/97, Slide 22
2. Profitability Analysis
•
Profitability analysis
carries out a profit analysis. Costs are compared to revenues. This is the last step in the settlement process.
• Profitability analysis takes an external viewpoint using actual data, by looking at market segments.
• We propose that CCBC’s profitability segments are based on product line. (Type of beer, pub, merchandise) Other options could be customers, activity, organization, geographical area, etc.
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SAP America, OS.PPT - 10/13/97, Slide 23
3. Profit Center Accounting
• The goal here is to have a structure according to profit responsibility. • Profit centers can be seen as investment centers. • Shows operating results from a management standpoint. • It is a statistical package, pulling data from different modules. • Data is primarily transferred from FI, SD, AM, and MM.
• Profit centers can be structured according to products, markets, or functions. We have chosen products.
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SAP America, OS.PPT - 10/13/97, Slide 24
3. Profit Center Accounting, cont’d
FI
: Transfer of primary costs and revenues from customer invoice processing
SD
: Transfer of revenues and sales deductions (freight, discounts) as well as reserves (e.g. from rebate agreements) via invoice transfer.
MM
: Transfer of all costs from goods movements (consumption postings, materials receipt, invoice receipt, price changes/revaluation, inventory differences)
AM
: Availability of all profit-related data from the creation, utilization, and sale of capital goods
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3. Profit Center Accounting, cont’d
SAP America, OS.PPT - 10/13/97, Slide 26
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4. Overhead Cost Management
Overhead cost management
plans, allocates, controls, and monitors indirect costs. All indirect costs are charged to the cost centers where they were incurred or to the jobs that led to their occurrence.
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Fixed Asset Processing Budgeting Leased Asset Processing Cash Management Project related plant maintenance SAP America, OS.PPT - 10/13/97, Slide 28
CAPITAL ASSET MANAGEMENT
Planned Plant Maintenance Plant Maintenance due to damage
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Fixed Asset Processing
Asset master record maintenance: Create Change Retire
Settle AuC
Post Capitalization
Transfer Posting
Write-Up
Creation/Transfer of Reserves
Reports
Inventory
Year-End Closing R
SAP America, OS.PPT - 10/13/97, Slide 29
AM - Depreciation
Planned depreciation is calculated automatically
Can be recalculated or changed manually
Calculated in multiple depreciation areas (parallel valuation technique)
Depreciation values are transferred as planned and actual costs are allocated to cost centers (CO)
Depreciation simulation and forecasting available for individual asset or group of assets.
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SAP America, OS.PPT - 10/13/97, Slide 30
Asset Master Record Data
Elements of an Asset Master Record
Historical cost Salvage value Life Insurance information Cost center SAP America, OS.PPT - 10/13/97, Slide 31
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INVESTMENT MANAGEMENT SCENARIO
Budget Approval Roll-Up Corporate Planning Budget Distribution Project Planning Measures Program Structure Reporting Settlement & Capitalization
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SAP America, OS.PPT - 10/13/97, Slide 32
IM - AuC to Asset
Capital Order
(greater than 30 days)
Create AuC
-Automatically created when investment profile is entered and order is released
ASSET Settlement
-Settles to AuC
AuC
Depreciation forecast and simulation interest calculation.
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SAP America, OS.PPT - 10/13/97, Slide 33
Treasury - TR
Cash Management (TR-CM) Handle all cash related transactions and reporting activities.
Distinguishes between actual money and payments in transit Integrated with G/L, A/R, and A/P systems and sales and procurement.
Funds Management (TR-FM)
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SAP America, OS.PPT - 10/13/97, Slide 34
TR-CM G/L A/R A/P •
The basic elements needed for managing cash:
•Where is our cash? •What will we receive?
•What will we pay?
•What other predictable transactions will occur?
Recurring Entries
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SAP America, OS.PPT - 10/13/97, Slide 35
Funds Management (Budgeting)
Functions:
Prepare budget Monitor budget by tracking the achievement to targets in each of the budgets divisions
To perform these functions the following must be estimated:
Cash requirements for operations Cash requirements for CI projects Planned cash receipts
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SAP America, OS.PPT - 10/13/97, Slide 36
Materials Management Processing Stock Material
Materials Requirement Planning Reservation processing reserve material plan goods issue Single item MRP Entire MRP Effects SD, QM, PP, FI SAP America, OS.PPT - 10/13/97, Slide 37
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Materials Management Processing Stock Material
Requisition Processing to Stock Material Requirement for material --> Purchase Requisition Source of supply Without a source of supply Input Examples Material Purchasing Information Purchasing Outline Agreement Vendor Effects SD, PP, QM SAP America, OS.PPT - 10/13/97, Slide 38
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Materials Management Processing Stock Material
Processing of RFQ Issued to Vendor
-
Communicates material/service requirements to potential suppliers - Input Examples • Material • Purchasing Information • Vendor • Supply Source • Time • Effects SD, QM, PP, CO SAP America, OS.PPT - 10/13/97, Slide 39
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Materials Management Processing Stock Material
Vendor Quotation Processing
- Occurs after vendors respond to quotation request - After Vendor information is submitted into system, price comparison is possible - A rejection notice is transferred if quotation is unselected
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SAP America, OS.PPT - 10/13/97, Slide 40
Materials Management Processing Stock Material
Purchase Order Processing for Stock Material
- Vendor quotation processing and vendor RFQ processing trigger this step - Input Examples Purchase Requisition Internal Order Cost Center Material Customer Order - A Purchase Order includes detailed data such as: type of
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material, quantity, delivery date and price SAP America, OS.PPT - 10/13/97, Slide 41
Materials Management Processing Stock Material
Processing Goods Receipt
- Begins with the arrival of materials and shipping notification - Material is checked and storage is determined - If order is accepted we adjust purchase order dates and select a valuation type -Effects FI, PP
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Sales and Distribution
Business Process Workflow Scenario: Standard Order Handling
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Master Data
Master Data for SD
Business Partners Customer Vendor (Internal i.e. MM) Beer for tap room, souvenirs Employee in Company (salesperson) Product Proposal Grouping of items to make available for sale (I.e. By a pallet of Pale Ale) If customer frequently purchases from a product proposal, this information can be assigned in Customer’s Master Data
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SAP America, OS.PPT - 10/13/97, Slide 44
Product
Master Data continued
Price Documents (for shipping, billing, sales) Sales support Organizational Structure (shipping points, sales areas,etc.)
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SAP America, OS.PPT - 10/13/97, Slide 45
Pat’s Bar in Calgary
Pat calls CCBC to inquire about products
Wants to buy two kegs of Pale Ale and one keg of Hefeweisen to be delivered weekly.
Sales Representative gets Pat’s company name, address, etc. to store in sales support master data. Also determines the distribution channel for his company for correct quotation.
Accesses inquiry processing to determine correct prices, a quotation process document is created and sent.
Pat agrees to the quotation. Next, standard order processing occurs with reference to the quotation.
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Billing Process
Product is determined to be in-stock
A credit check occurs and passes resulting in Pat’s order being released
Delivery processing occurs in which is it determined that the delivery is relevant for billing and for shipping.
Billing
Process determines that the purchase is not relevant for a rebate Billing document is sent Export papers are created and sent Billing document is not released for billing because: Order confirmation is necessary to release billing document
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SAP America, OS.PPT - 10/13/97, Slide 47
Shipping Process
Transportation planning occurs
Shipment route is determined (stored in Master Data for future reference) From Chico Center to Chico train depot via truck From Chico to Calgary via rail From Calgary train depot to Calgary distribution center via truck From distribution center to customer (Pat’s Bar is within 100 mile radius) Transportation processing occurs Shipping notification is generated and sent to customer
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SAP America, OS.PPT - 10/13/97, Slide 48
Delivery of Goods
Quality is checked (by PP, referenced by SD)
Order is sent to MM
Goods issue is posted
Truck is loaded from plant site and sent
Upon delivery to Pat’s Bar, it is determined that one keg of Pale Ale is damaged.
Pat signs invoice for acceptance of the one keg of Pale Ale and one keg of Hefeweisen. To accommodate for damaged goods, CCBC will: a) Offer to send Pat’s Bar a keg through a rush order with no extra cost. Delivery will be rushed b) Offer to give Pat’s Bar a credit.
R Signed invoice is given to FI for processing
SAP America, OS.PPT - 10/13/97, Slide 49
Packaging Returns
Empty kegs picked up from Pat’s Bar upon next delivery
Returnable packing pick-up process occurs Shipping papers are created Empty kegs loaded onto trailers Trailers loaded onto train to be sent back to Chico center MM processes goods receipt Goods receipt is posted
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SAP America, OS.PPT - 10/13/97, Slide 50
Conclusion
Pat’s Bar is now CCBC’s business partner, thus is located in our Master Data
CCBC can now call him as part of our sales activities or he can call on us.
If Pat’s Bar becomes a frequent customer, CCBC can assign material listing or product proposal to his account making transactions faster.
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SAP America, OS.PPT - 10/13/97, Slide 51
Sales Inquiry Quotation Delivery Free Of Charge Standard Sales Order Returns Scheduling Agreement Shipping Delivery Billing Debit Memo Invoice Financial Accounting SAP America, OS.PPT - 10/13/97, Slide 52 Transport Credit Memo
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M g t m l a s M i t a r e
Organizational Management
Organizational Plan Processing
Job Description
Processing of Employee Status for Planning and Development
Staffing
Personnel Cost Planning R
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Time Management
Long Term Daily Work Schedule
Flexible Daily Work Schedule
Calculate Overtime
Incentive Wages
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Payroll Processing
Multinational tax, benefit, and garnishment related laws and regulations
Automate the workflow system and be flexible enough to adapt itself
Automatically transfers data to general ledger and cost accounting systems R
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Salary Administration
Compensation Structure
Structuring and Managing of salary and reward compensation packages
Can analyze the effects of salary increases and decreases R
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Benefits Administration
Administering human resource benefits
setting up each benefit plan define cost and coverage options eligibility rules established
Step-by-step guides for developing, defining, and maintaining benefit plans
Eligibility rules based on predetermined criteria defined and verified by the system R
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